The euro was at $1.2061 vs. the dollar, ahead of a European Central Bank meeting where no interest rate change from 2 percent is expected.

Of stocks in focus in Europe, Dutch bank and insurance group ING (30360)
ING, -0.71%
jumped 2.9 percent after it said second quarter net profits fell 11.9 percent to 1.64 billion euros due to a year-ago 697 million euro gain on reserve revaluation, but operating profits rose 37.7 percent to 1.6 billion euros. Analyst had estimated operating profits between 1.08 billion and 1.28 billion euros, according to AFX News.

Banking operating profits before tax rose 57.8 percent to 969 million euros, on higher income and substantially lower risk costs, and insurance operating profits before tax climbed 17.1 percent to 1.26 billion euros, on strong non-life results in Canada, higher life results in Asia, and the gain on the sale of the Australian non-life business. It gave no profit outlook, but said it was "optimistic" about 2004 results. It added that it will not issue shares to pay its interim dividend of 49 eurocents per share, as its capital position is more than adequate and the debt/equity ratio has been reduced.

German bank HVB (802200) also climbed, rising 3.8 percent after it said second quarter pre-tax profit rose to 336 million euros from 53 million a year ago, as loan provisions fell and net interest income rose 0.7 percent from a year ago, or 13.1 percent from the first quarter, to 1.45 billion euros. Pre-tax profit estimates ranged from 249 million to 365 million euros, according to an AFX News poll.

Like many banks, profits from trading declined from the first quarter, falling 30.5 percent sequentially to 182 million euros. It sees loan losses for 2004 being 1.8 billion euros vs. an earlier estimate of 1.94 billion, due to an easing of economic tensions and better risk management, but otherwise left targets for 2004 unchanged.

EADS (005730), the 80 percent owner of Airbus, rose 1.4 percent after Virgin Atlantic said it expects to order or set options for up to 26 Airbus A340 aircraft to double the size of its fleet. The order to Boeing's
BA, -0.01%
rival is worth over $5 billion, based on list prices.

Dutch publisher VNU (38987) improved 1.3 percent after conditionally agreeing on a 50-50 joint venture with WPP to launch a TV ratings company. The 50/50 venture combines VNU's ABG Group with WPP's Kantar and the non-US TV service of VNU's Nielsen Media Research. The business will offer ratings in 30 countries, and employ 1,800 people, WPP said.

Clariant lower as Q2 profits at low end of estimates

Swiss chemicals group Clariant declined amid swinging to a second quarter net profit of SFr54 million on 6 percent like-for-like sales rise to SFr2.21 billion. Analysts had expected profits between SFr54 million and SFr73 million, according to an AFX News poll.

It said sales growth was strong across all regions with the exception of Europe, which remained sluggish, and said its use of petroleum derivatives make it less impacted by oil price moves. It said it will "take as much time as required" to sell additional assets and said it sees a "satisfactory" performance for the rest of 2004, though seasonal factors typically hurt the second half.

JP Morgan said Clariant looks to be in better position financially, but operational risks remain. "In our view, there is significant risk that raw material prices inflation in the second half will squeeze margins," it said.

SG Securities on Thursday, which downgraded Credit Suisse
CSR, +12.50%
to hold from buy, said the current share price values investment banking unit Credit Suisse First Boston at 0. SG said the bank's second quarter earnings report showed "investment banking was appalling, hit by weak trading and an upward trend in costs." It said it is too early to buy Credit Suisse, despite what it sees as a 30 percent discount to fair value, as it sees no short-term catalyst. Swiss-listed Credit Suisse shares recovered 0.6 percent at SFr39.05 per share.

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